Qualstar: Fiscal 3Q24 Financial Results

(in $ thousand)	3Q23	3Q24	9 mo. 23	9 mo. 24
Revenue	3,142	1,358	7,212	6,011
*Growth*		-43%		*-17%*
Net income (loss)	(158	(44)	(170)	(532)

Qualstar Corporation announced its financial results for the 3- and 9-month periods ended September 30, 2024.

Revenue decreased 43% for 3FQ24, compared to 3FQ23, and decreased 17% for the 9 months ended September 30, 2024, compared to the 9 months ended September 30, 2023.

The declines in revenue were primarily due to lower shipments of power supplies products in the 2024 periods compared to the 2023 periods, and to a lesser extent due to lower shipments of storage products this year compared to last year.

The company expects a significant revenue reduction in its power supplies business for the foreseeable future due to the loss of a large customer.

Gross margin percentage improved to 41% for 3FQ24, compared to 31% for 3FQ23, and improved to 30% for the 9 months ended September 30, 2024, compared to 29% for the 9 months ended September 30, 2023. The gross margin percentage improvements were due to efficiencies resulting from lower production-related labor costs on personnel reductions, and favorable changes in firm’s product mix.

Net losses for the 3- and 9-month periods ended September 30, 2024, were impacted by revenue levels and also by certain non-routine expenses and non-cash charges.

The firm uses an Adjusted EBITDA financial measure to understand and evaluate its core operating performance. Adjusted EBITDA for 3FQ24 was negative $52,000, compared to positive $200,000 for 3FQ023. Adjusted EBITDA for the 9 months ended September 30, 2024 was negative $159,000, compared to negative $23,000 for the 9 months ended September 30, 2023.

We continue to pursue acquisitions and partnerships with companies in the data management software and hardware systems spaces.

The company ended the quarter with $2.2 million in cash and cash equivalents.